Growth Potential Of Impinj (PI) Stock Is High As It Operates In A Significantly Untapped Market


The technology company Impinj Inc. (PI) increased almost 20 percent since start of this month, followed by positive remarks from Wall Street analysts.

Impinj makes RFID chips that can be used to monitor objects without the need for an external power source as there is enough wireless power available to meet the power requirements of those RFID devices. In production, retail, logistics, and so on, RFID tags are in demand.

On November 30, Goldman Sachs analysts set a “buy” rating for Impinj shares and a target price of $46. Impinj is at the initial stage of entering a “significant untapped market” in the field of RFID, according to experts. The radio frequency identification or RFID technology makes use of radio waves to passively recognize a tagged object. Market of RFID technology is projected to be at $40.5 billion by 2025, and it is Impinj that can realize its potential in this direction successfully.

But Impinj’s shares dropped in October after the company issued a weaker report for the third quarter. Third-quarter sales of Impinj fell 31 percent year-on-year to $28.2 million. As a result, instead of a profit, the corporation received a loss of $0.29 per diluted share. The company delivered more than 100 million newly released RFID M700 chips in the third quarter. These advanced solutions can boost the profit margin of Impinj over time. For the M700 product line, however it will take many quarters to replace older developments.

Impinj’s loss will increase to $0.37 per share in the fourth quarter, the company believes. Revenue will be reduced to $25.5 million at the same time. Due to demand from clothing retailers and the automotive industry, the company expects shipments to normalize only in the spring or summer.

Impinj Inc. (PI) was up 1.45 percent on Tuesday to conclude the trading at $42.63.


Please enter your comment!
Please enter your name here